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Barometers maintain upward momentum

Stock markets were trading in fine fettle in the afternoon session amid reviving economy, strong foreign inflows, solid corporate earnings and buoyant global markets. Sentiments also perked up as European Union states that its first high-level dialogue on trade with India saw interest by both sides in resuming negotiations for an ambitious, comprehensive and mutually beneficial trade and investment pact once their respective approaches and positions are ‘close enough’. Meanwhile, securitisation volumes halved to Rs 24,400 crore during the December quarter compared to the year-ago period, but showed a healthy 61 per cent rise over the preceding September quarter. The market breadth remained optimistic, as there were 1439 shares on the gaining side against 1325 shares on the losing side, while 171 shares remained unchanged.

On the global front, Asian markets were trading mostly higher following another record-breaking performance on Wall Street as vaccinations are rolled out, infections fall and investors bet Joe Biden will be able to push through his massive stimulus. Back on street, as per private report government plans to conclude stake sales in a couple of companies before March-end even though a large majority of the ongoing strategic divestment pipeline will be completed in the next financial year.

The BSE Sensex is currently trading at 51689.31, up by 340.54 points or 0.66% after trading in a range of 51377.70 and 51753.42. There were 23 stocks advancing against 6 stocks declining, while 1 stock remains unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.25%, while Small cap index was up by 0.42%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.87%, Telecom up by 1.66%, Energy up by 1.18%, TECK up by 0.90% and Utilities was up by 0.78%, while Auto down by 1.07% and Industrials was down by 0.01% were the only losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 4.01%, ONGC up by 2.86%, Titan Company up by 2.08%, Reliance Industries up by 1.47% and Power Grid was up by 1.37%. On the flip side, Mahindra & Mahindra down by 2.71%, Bajaj Auto down by 1.33%, Bajaj Finance down by 0.91%, Bajaj Finserv down by 0.62% and NTPC was down by 0.15% were the top losers.

Meanwhile, panel report tabled in Parliament has said that the government expects that the roll-out of 5G services will start in early-2022 after another round of spectrum auction that is planned to be held after six months. The Standing Committee on Information Technology pulled up the Department of Telecommunications (DoT) for delay in the launch of 5G services when several countries have commercially rolled out the next-generation technology.

The report has stated that the telecom ministry has already announced the auction of spectrum worth Rs 3.92 lakh crore from March 1, but it does not include the desired frequency band for 5G services. It also said the committee has been informed that by the end of the calendar year 2021 or beginning of 2022, there will be some roll-out in India in some specific uses, because 4G should continue in India for at least another 5-6 years.

The panel further said that from the foregoing, the committee are inclined to conclude that sufficient preparatory work has not been undertaken for launching 5G services in India. As such, India has not moved beyond the modest beginning stage as compared to other countries in the world. The delay in the launch of 5G services reflects poorly on planning and execution in the country.

The CNX Nifty is currently trading at 15215.65, up by 99.85 points or 0.66% after trading in a range of 15133.80 and 15237.90. There were 37 stocks advancing against 12 stocks declining, while 1 stock remains unchanged on the index.

The top gainers on Nifty were Asian Paints up by 3.92%, SBI Life Insurance up by 3.71%, HDFC Life Insurance up by 3.10%, ONGC up by 3.01% and Wipro was up by 2.46%. On the flip side, Indian Oil Corporation down by 5.14%, Mahindra & Mahindra down by 2.78%, Tata Motors down by 2.43%, JSW Steel down by 1.65% and Bajaj Auto was down by 1.39% were the top losers.

Asian markets were trading mostly higher; Nikkei 225 surged 117.43 points or 0.4% to 29,505.93, Straits Times advanced 3.58 points or 0.12% to 2,934.98, Hang Seng increased 120.70 points or 0.41% to 29,440.17, Shanghai Composite gained 60.27 points or 1.71% to 3,592.72 and Jakarta Composite was up by 15.19 points or 0.24% to 6,224.06.On the other side, KOSPI was down by 6.57 points or 0.21% to 3,084.67.

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